A call with John Black, CEO of Regulus (REG.V) and Aldebaran (ALDE.v)
Disclaimer: This is my interpretation & notes of the conversation. I own shares. I’ve never been compensated to cover any stock. A certain level of specific company knowledge is required to understand my notes.
Regulus Resource
- Assays: hole 31-32- completed, working on results to be released this month. ‘Infill’ holes that are targeting some gaps in the current resource.
- Drilling: Holes 33 & 34 are underway. Hole 34 is targeting the high mag target and started first half of June. Planned depth is 1200m depending on visuals coming out of the ground we can go deeper (1400m?)
- Rigs: Two rigs running at the moment. Finished contract with CMC for additional rigs a(s they will drill from CMC ground). 1e added by mid-month, 2e end of month. 4 in total. Drop back to 3 afterwards (geo rig out. This to keep up with interpreting and deciding next holes)
- Permit progress: no set time, still guiding sept-oct, could be 1 month earlier or later…
- Surface acquisitions: many steps have been taken. Once the permit is in, you need to activate it and at this point you need the access rights. They have access enough now to start drilling when the permit is received. However it is prudent to wrap up as much as possible BEFORE drilling starts.
- Drilling plan: on 30-34-26 line + Step out east (4-5 holes) follow-up of C161 & C164 (reference; in the second picture below, the two holes at the right-hand side of the box ‘DH31’) + close ‘gaps’ in current outlined deposit. As always, plans change with results.
- Financing: Preferably at a higher SP. Some interesting holes coming (34-…), summer market slow, believe in a constructive copper market. Need to finance before years end to keep up the pace of drilling, but no rush to set something up during summer doldrums. RouteOne is a backstop for financing and flexible in their cooperation in any support needed (I mentioned most if not all juniors are truly jealous of a partner like RouteOne, best not to mention them to often). In parallel there is a potential willingness to consider something earlier with a “strategic investor”, as those can sometimes be done at a significant premium and have other strategic benefits.
- Resource Estimate: activated a lot of (new) interest. This must be seen as parties wrapping their head around the asset, getting to know the asset, team, geo model. Sniffing around, nothing more nothing less. Setup done of formal data rooms, NDA’s in place.
- BVN Sulphides: starting (if approved, expected to reach Pre-Feasibility stage by 1Q20) their sulphide project with 20ktpd => They have the water, capital etc. to get this started before 2025 when closure actions for the current mine would kick in. In a later step they could expand the operation to 60ktpd. It’s John believe this deposit can support a 100ktpd operation eventually.
- The proposed autoclave at Yanacocha could process REG’s worst Arsenic ore. Something to think about
- BOD: Addition of Jason Attew to the BOD- needed a new independent Director on the board – idea to diversify: Jason brings more financial strength (knowledge, network, big company thinking on M&A) on board. Could have found a board seat any other bigger player, REG was on the right spot on the right time. This shows again the network & credibility they have built in the sector.
- Economics: AntaKori economical? Yes we believe so. Based on comp’s and knowledge/experience of the management. A lot of work still to be done for PEA in 2020 before we have a rough first idea.
Golden Brew
- Drilling done. Partner is working on release. Expect it shortly
- Potential is huge as it is targeting a sediment-hosted gold deposits in Nevada
- Golden Brew is a ‘Bonus’ for REG as no expectations nor build into the SP
Aldebaran
- Altar
- Two releases coming this month
- One for the 2018 assays, one for the 2019 assays
- Updating modelling – October
- Aguas calientes
- Drilling Gold- silver prospect in September
- Limited drilling in the past on visually interesting boulders. However, the interpretation is that these boulders moved and as such the real deposit is offset
- 2500m of drilling planned to explore the geological model they have in mind
- Target: moderate tonnage, higher grade
- Rio Grande
- Target: Deep Cu-Au structure
- Top-level material has been seen as marginal
- Neighbour leap leach operation (Lindero – Fortuna) start up production at the end of the year. SART installed – Fortuna showed interest in talking about taking of this top level material. Naturally they are first focused on getting their operation up and running. RIO’s ore would be added at backhand of LOM so no immediate value/impact.
